Suria Cap to bid for RM1.2b project

By Sharen Kaur
Published in NST, Jan 4 2010

Port operator and builder Suria Capital Holdings Bhd (6521) has been qualified to make a bid for the RM1.2 billion power plant in Kimanis, Sabah, and is preparing a proposal to submit to the project owner by April.




Group managing director Datuk Dr Mohd Fowzi Mohd Razi said the company is working on the proposal with its partner from Taiwan, a major engineering, procure and commissioning (EPC) contractor, as well as a local firm.

A consortium, comprising the three companies, has been formed and it will be led by the EPC contractor, he said.



The project owner is Kimanis Power Sdn Bhd, a 60:40 joint venture between Petronas Gas Bhd and NRG Consortium Sdn Bhd, the business arm of Yayasan Sabah Group.

Twelve companies including Muhibbah Engineering Bhd, Gadang Holdings Bhd and Zelan Bhd have been shortlisted to make a bid for the project.



It is understood that Petronas is planning to award the contract by August this year.



The planned capacity of the 300 megawatts (MW) Kimanis power plant will be implemented in two phases. The first phase will have a capacity of 100MW, which will be increased by another 200MW in the second.



The power plant, covering 41ha, is expected to be completed by the end of 2013 and fully operational by early 2014.



"Competition is tough as 12 companies have been shortlisted. But I believe we have a good chance to win as we are Sabah-based, and partially owned by the state government," Mohd Fowzi told Business Times.



Mohd Fowzi, who is the former director of the state economic planning unit under the Sabah Chief Minister's Department, said Suria Capital expects to do better this year on improved earnings from its port business.



Suria Capital operates eight ports in Sabah through its unit Sabah Ports Sdn Bhd. The ports are owned by the Sabah Port Authority and Suria Capital holds a 30-year concession, starting 2004.



"The lowest point for our port business was in the first quarter of 2009. Business has since picked up and we expect the momentum to continue," he said.



Port operating business contributes almost 75 per cent to Suria Capital's earnings. The balance comes from bunkering services (fuel, fresh water and lubricants), logistics, and contract and engineering business.



For fiscal year ended December 31 2008, Suria Capital's net profit was RM37.4 million. In the first nine months of 2009 it made RM37.2 million in net profit.
 
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